• On 21 May 2013, Moody’s announced rating actions on MBIA Insurance Corp., National Public Finance Guarantee Corp., MBIA Inc. and other related entities. Because of the large number of credits across several asset classes affected by these rating actions, including Moody's-rated securities that are guaranteed or "wrapped" by these companies, ratings appearing on this website may not yet reflect current information. For current information on affected credits, please visit www.moodys.com/fig.
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Announcement:

Moody's: Asian Liquidity Stress Index rises again in September

 The document has been translated in other languages

Global Credit Research - 10 Oct 2012

Hong Kong, October 10, 2012 -- Moody's Investors Service says that its Asian Liquidity Stress Index (Asian LSI) rose for the third consecutive month in September and now stands at 23.8%, up from 21.8% in August and 16.8% in July.

"The index is now at its highest level since the first quarter of 2010. At the same time, the Asian LSI, which increases when speculative-grade liquidity appears to decrease, remains well below the high of 37% recorded in the fourth quarter of 2008, during the financial crisis," says Laura Acres, a Moody's Senior Vice President.

"Specifically for September, the change reflects the net addition of two companies to the lowest speculative-grade liquidity score category (SGL-4), which now totals 24 companies," says Acres.

Acres was speaking on the release of Moody's latest report on the index, entitled "Asian Liquidity Stress Index."

"Looking ahead, we expect that issuance will remain sporadic and opportunistic until the situation in the euro area shows some signs of stability," says Acres.

"In addition, overall liquidity for Asian speculative-grade companies may deteriorate if the sovereign debt problems in the Euro area hurt economic growth in Asia, or if it causes lenders to further tighten their lending standards, which would affect lending rates to speculative-grade companies," adds Acres.

The report notes that the level of corporate family rating downgrades for speculative-grade companies continues to exceed the number of upgrades. In the third quarter, there were nine downgrades and three upgrades, making July-September the fifth consecutive quarter where downgrades exceeded upgrades. September also saw the first Asian fallen angel for more than two years.

The report says that most Asian speculative-grade companies now have stable rating outlooks, but 37.6% of Moody's issuer outlooks are negative or on review for downgrade, up from August and at the highest level since the fourth quarter of 2008, the peak of the global financial crisis.

The net amount of high-yield debt Moody's rates in Asia rose to USD41.7 billion at the end of September, from USD40.9 billion in August. Three deals closed in September: RKI Finance (2012) Ltd's USD350 million senior notes due 2017 and guaranteed by Road King Infrastructure Limited (B1 stable); Kaisa Group Holdings' (B1 negative) USD250 million 12.875% notes due 2017; and Fantasia Holdings Group (Co) Ltd's (B1 stable) USD250 million, 13.75%, five-year senior unsecured notes.

Subscribers can access this report via this link: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_145823.

***

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: London +44-20-7772-5456, New York +1-212-553-0376, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

Laura Acres
Senior Vice President
Corporate Finance Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Philipp L. Lotter
MD - Corporate Finance
Corporate Finance Group
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SUBSCRIBERS: (65) 6398-8308

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Moody's: Asian Liquidity Stress Index rises again in September
No Related Data.

 

© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

 


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